Alcohol can’’t escape Illinois tax grab

Illinois’ current state excise taxes per gallon of beer ($0.23), wine ($1.39) and spirits ($8.55) are higher than most neighboring states.

Illinois? businesses and consumers struggle each day with the negative effects of the state?s high-tax environment. Illinoisans suffered a record income tax hike in 2011, Illinois? businesses face the fourth-highest corporate income tax in the industrialized world and families in the state pay the second-highest property taxes in the nation.

But there are other high taxes in Illinois that often receive much less attention such as the state’s tax on alcohol.

It wasn?t too long ago when Illinoisans experienced a huge tax increase on alcohol. Gov. Pat Quinn signed a capital construction bill into law in 2009 that included a series of alcohol tax hikes ? a 24 percent increase per gallon of beer, 90 percent increase per gallon of wine and 90 increase percent per gallon of spirits.

As a result of those tax hikes, Illinois is now a relatively high-ranking state when it comes to alcohol taxes.

Illinois’ current state excise taxes per gallon of beer ($0.23), wine ($1.39) and spirits ($8.55) are higher than most neighboring states.

High tax rates encourage Illinois consumers to shop in other states to lower their consumer costs. David Ozgo, chief economist with the Distilled Spirits Council of the United States, argues: People react to higher prices. These tax increases are going to put Illinois retailers at a huge competitive disadvantage vis-à-vis surrounding states.

The tax rates on alcohol may seem small compared to the income tax hike of 2011, but it’s taxes like these that continue chipping away at the little that’s left in the family budget at the end of every month.